), then sell on the way down.I'm planning to sell my high priced California property (520K, rent 2300/month) that is negative cash flowing by around -100/month  and do a 1031 exchange to properties that make sense in Texas or elsewhere

Hi BPI would like some help with this example:we have a condo in boston we Bought for 475Kfor simplicity (we no longer qualify for the tax exemption of $500K as spouse)my agent called and said that we can sell at $900K (assume prefect world)we have a home line of credit of 300K that we have taken out to flip a duplex in pittsburgh.we are thinking of doing a 1031 Exchange: what would out math be?  

I don't want to hassle with a 1031 as I am still trying to decide where I want to buy the next properties.

I am looking at selling a property, and 1031ing into a new property.The seller is willing to carry a second mortgage.I plan to close the purchase transaction using the cash from the 1031.After that transaction closes, what happens if I then sign a second with the seller, and he gives the cash right back to me?

In the end it took 5 hours to get it done, there was a bank lawyer who was 3 hours late, incorrect docs from the bank, yelling by everyone, crying sellers, getting kicked out of the seller's attorney's office, an attorney who still used a type writer, a wonderful title rep who canceled her dinner plans and had us shift the closing to her dining room (sans sellers), final check exchange on Monday, and pizza.

No key exchange.  

IRA or 401k, you'll be taxed at ordinary income rates, whereas the investments that generated the gains may be taxable at 15% cap gains rate had they not been invested inside the plan.Most cash-flow producing investment real estate already has great tax advantages, so other than not being able to reduce your taxable income via a contribution, you may be better off just investing outside the plan in RE, and doing 1031 exchanges to the extent you're able to do so.

For example, you could do a 1031 exchange with these properties and pay no taxes upon sale.  

For me to show them I have a level of commitment and not a Johnny Come Lately that will be there for a meeting or two and leave.Nothing can ever beat the real in person networking and exchange of information.

*Disclaimer: There are no guarantees of return on investment as there are some risks involved with all investments.Exit Strategies/ How To Repay Private Investors Principal:Refinance or sell the property and cash out.Another option is to exchange the first Private Investors mortgage position with a second Private Investor.In the unlikely scenario one of these options are not available, Private Investors will receive an additional 4% rate of return until one of the options listed above is available.Examples and Financials Examples of a 2, 8, and 50 unit property are located towards the end of this Business Plan.The (5) five year financial information is found at the end of this Business Plan.Business Legal Structure Legal StructureBetter Way Properties, LLC is a Limited Liability Company established in Wisconsin.Additional LLC’s will be created as necessary ensuring there are no more than (2) two properties per LLC to help protect assets and limit risk.Ownership/ManagementPrincipal MembersJohann Kleisch – 50% Member & ManagerCarolyn Kleisch – 50% Member & Secretary The Kleisch’s have been together over seventeen years.They live in Evansville Wisconsin with four of their five children and look forward to continuing their journey of Real Estate Investing together.Mr.